Indonesians ready to embrace cashless future
The Jakarta Post
Indonesia is moving toward a cashless future as Indonesians are increasingly confident about using digital payment systems and going cashless.
Eight out of 10 Indonesians (76 percent) say they can go without cash for an entire day, Visa’s Consumer Payment Attitudes study in 2017 has found.
According to the study, fewer Indonesians are carrying large amounts of cash because they are using electronic payments more often (57 percent) and feel using cards is safer than cash (61 percent). Sixty percent of respondents say they would like to eliminate the physical process of paying.
Several key trends indicate Indonesians’ readiness to embrace the country as a digital nation in the future. One of the trends is the growth of seamless digital payment methods.
Nowadays, people can easily make payments anytime using mobile wallets, QR codes, chat bots, virtual assistants and devices connected to the Internet of Things (IoT). These new experiences aren’t everyday life for everyone yet, but they are beginning to scale. It has been projected that 20.8 billion connected devices will be online by 2020.
The shift to a cashless future is also supported by the growing number of digital savvy consumers in Indonesia. In its recent Consumer Payment Attitudes study, Visa found that half of all Indonesian respondents would like the country to become a cashless society. Almost all Indonesians have made online purchases, and interestingly, 85 percent of them have made device-initiated payments with their smartphones – from shopping to booking a taxi to ordering and paying for food in a variety of restaurants.
With many consumers willing to go “fully digital” with regard to financial services, a set of digital propositions is emerging that will turn almost any device into a potential Point of Sale (POS). Merchants can now accept payments in a multitude of ways, including scanning a QR code and through contactless credit cards, wearables and digital wallets.
“As Indonesian consumers become more digitally savvy, they want to be able to shop instantly and securely, anytime, anywhere,” said Riko Abdurrahman, president director of PT Visa Worldwide Indonesia.
“Visa continues to collaborate with our clients and merchants in embracing real-time and secure digital payment solutions, in support of the national goal for Indonesia to become truly cashless in the near future.”
Recently, Visa teamed up with Cashlez in distributing 5,000 mobile POS devices to expand contactless payment acceptance in tourist destinations across the country, including Bali, Lombok in West Nusa Tenggara, Yogyakarta, Surakarta in Central Java, Surabaya and Malang in Eat Java, Medan in North Sumatra and Bandung in West Java. The new POS offers not just a place for checkouts, but also to build relationships and reward customer loyalty.
As payments become more digital and threats to payment confidentiality and integrity escalate, challenges in payment security are increasingly acute. In responding to these challenges, technologies such as EMV chips, point-to-point encryption, tokenization and stronger biometric authentication are widely developed to strengthen payment security.
“Visa is also committed to ensuring that our network operates at the highest level of security available and will continue to steer the Indonesian payment industry toward the adoption of strong technologies based on industry standards, such as EMV chips, tokenization and point-to-point encryption,” Riko explained.
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